(Reuters) - Concho Resources Inc reported quarterly profit that missed Wall Street estimates on Tuesday, sending shares of the shale firm lower in after-hours trading.
Oil and gas firms have been under pressure from investors to pull back on spending and deliver higher returns. Concho said in a news release that “capital discipline and moderating activity” would help it generate more cash this year.
Concho Resources’ net income rose to $1.5 billion, or $7.55 per share, in the fourth quarter ended Dec. 31, from $267 million, or $1.79 per share, a year earlier.
Analysts had expected revenue of $1.9 billion for the quarter, but the company reported revenue of $1.07 billion. Concho’s stock fell $6 to $115 in after-hours trading on Tuesday. During the regular session the stock dropped 1.6 percent to $121.00.
Total production rose to 307,000 barrels of oil equivalent per day (boe/d) in the quarter, from 211,000 boe/d in the same period the year prior.
On an adjusted basis, the company earned 94 cents per share, below Wall Street’s forecast for $1.13 per share, according to IBES data from Refinitiv.
Concho dialed back its 2019 spending plans to around $2.9 billion. It had previously announced plans to spend $3.4 billion to $3.6 billion this year.
The Midland, Texas-based Concho is focused on the Permian Basin, the largest and busiest U.S. shale field, where producers this month are expected to pump 4 million barrels of oil per day, according to the U.S. Energy Information Administration.
Last year, Concho purchased smaller rival RSP Permian Inc in an all-stock deal worth about $9.5 billion.
The company will hold a call with analysts on Wednesday morning.
Reporting by Jennifer Hiller in Houston; Editing by Matthew Lewis
